Rover's Weekly Market Brief —9/14/2018

Printer Friendly Printer Friendly September 14, 2018

Indices

DJIA: 26,154.70 (+0.92%)

NASDAQ: 8,010.00 (+1.36%)

S&P 500: 2,905.00 (+1.16%)

Commodities

Gold: 1,198.80 (+0.31%)

Copper: 268.30 (+2.31%)

Crude Oil: 68.95 (+1.77%)

Economy

In its first decline since February 2017, wholesale inflation dropped -0.1% in August, after an upwardly revised +0.2% gain in July, with the drop bringing yearly wholesale inflation down to +2.8% from +3.3% in July. The drop in overall wholesale inflation was primarily due to a -0.1% drop for services, which fell for trade margins (-0.9%), transporting passengers (-1.9%), and transporting goods (-0.1%). Drops for food prices (-0.6%) balanced out increases for energy (+0.4%), leaving wholesale goods prices unchanged in August. Construction prices slowed from +0.4% in July to a +0.1% gain, with office buildings up +0.2% and warehouses, schools, and health care buildings each up +0.1%.

Consumer inflation rose +0.2% in August, matching July’s monthly increase, and dropping yearly inflation from +2.9% to +2.7%. Food prices were up +0.1%, energy prices were up +1.9%, and service prices, excluding energy services, were up +0.2%. Within service prices increasing costs for shelter (+0.3%), water/trash services (+0.3%), and transportation services (+0.3%) were offset by drops in prices for medical care (-0.2%). Core inflation, which strips out the volatile food and energy sectors, slowed to a +0.1% gain compared to July’s +0.2% increase, which dropped overall yearly core inflation from +2.4% to +2.2%. The largest yearly price increases for consumers were for fuel oil (+30.9%), motor fuels (+25.9%), and gasoline (+20.3%), while yearly prices dropped for audio/video products (-12.8%), toys (-9.3%), household furnishings (-5.1%), and apparel (-1.4%).

Retail sales, seasonally adjusted but not adjusted for inflation, were revised upward for July from +0.5% to +0.7%, but sales in August rose only +0.1%, the smallest gain in the last six months. August sales dropped for automobile dealers (-0.8%), clothing retailers (-1.7%), furniture stores (-0.3%), and department stores (-1.0%), but rose at miscellaneous stores (+2.3%), gasoline stations (+1.7%), and nonstore (i.e. online) retailers (+0.7%). On a yearly basis overall sales were up +6.6%, with increasing prices helping to boost gasoline sales by +20.3%, and additional increases for online retailers (+10.4%), and restaurants (+10.1%). Yearly sales dropped for sporting goods stores (-3.9%), and department stores (-0.7%).

Upcoming Economic Reports:

Wednesday September 19 – Housing Starts

Thursday September 20 – Existing Home Sales

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
FedEx
(FDX)
Neogen
(NEOG)
Copart
(CPRT)
Darden
Restaurants
(DRI)
IDW Media
Holdings
(IDWM)
National Energy
Services
(NESR)
Cracker
Barrel Old
(CBRL)
Terreno
Realty
(TRNO)
Thor
Industries
(THO)
iBio
(IBIO)




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